Morningstar, Inc. - September 29, 2025
Is Your Dividend Income at Risk?
Plus, what you need to know about the steepening yield curve...
 Morning DigestSeptember 29, 2025 Dan Lefkovitz, Dan Kemp, Ivanna Hampton Plus, a look at the lagging performance of healthcare and consumer defensive stocks. 
ADVERTISEMENT  Editor's Picks  Short-term yields are falling as the Fed cuts interest rates. Sarah Hansen  Required minimum distribution-related tax bills hurt, but surgical pruning of problem positions can help you raise cash and reduce risk. Christine Benz  Why retirees struggle to give themselves permission to spend, and how to finally break up with your savings habit. Jess Bebel Investing Insights The rise of BRICS will rearrange how investors allocate wealth, according to Pictet’s Vassalou. Leslie Norton The PCE Price Index increased 0.26% in August. Bella Albrecht We’ve reduced our fair value estimate of UPS stock. Matthew Young Lowering our fair value estimate on CarMax stock as macro headwinds hit. David Whiston We expect no immediate impact on Big Pharma firms. Jay Lee New Stock Analyst Reports Alibaba (BABA) is losing market share to PDD and Douyin in the China e-commerce business, and we don't see a quick fix in the near term. Alibaba's number of annual active consumers in the China retail marketplace was surpassed by PDD in the fiscal year ended March 2021. Meanwhile, Douyin has gained share from Alibaba, especially in the beauty and apparel categories in recent years, and entered the traditional search-based e-commerce space, competing directly with Alibaba. The number of annual active consumers at Alibaba is close to the ceiling in China. Alibaba's gross merchandise volume to China's online retail sales of goods ratio was 62% in the year ended March 2023 at Alibaba, down from 72% in the year-ago period. We believe Alibaba's marketplace monetization rates will decline in the long run, due to a mix shift toward Taobao, which has a lower take rate compared with Tmall, and more competition. Celsius (CELH) is poised to grow in the energy drink category in North America, as recent partnership agreements with PepsiCo further align the interests of the two parties for long-term growth in the category. In addition, the acquisition of Alani Nu has unlocked opportunities to tap demand from female consumers. That said, we remain skeptical that Celsius benefits from a durable competitive position underpinned by brand intangibles or cost advantages, given intense competition from resource-rich incumbents with strong brands, such as Monster and Red Bull, and smaller entrants’ propensity to deliver innovation. The Tools You Need to Invest Like an Analyst Stay connected:
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